Thursday, October 22, 2015

Economist's View: Opinion: Alan Krueger: The Minimum Wage: How Much is Too Much?

Good question, because how is a job where the employee bags groceries, rings up groceries, makes cheeseburgers, cleans up after people, takes orders from customers, worth. Not as much as the person who hires those people, or as much as the people who supervise those employees. In a not free, but private market economy, a lot of this is left up to the employer as far as how much their employees are worth over the minimum wage. Whatever the minimum wage should be, it can’t be so high that small employers especially simply can’t afford to pay their entry-level employees that wage. You don’t want a minimum wage that equals the amount of money of a supervisor, or a manager. Because the supervisor and manager simply has more responsibility and value to the company, then someone who is just starting with the business. Perhaps coming off Welfare and might only have a high school diploma.

I hate the term non-essential employee, because it implies that other employees are not essential. Which comes up in the minimum wage debates and opponents will say that entry-level and other lower-level employees aren’t worth much more than the minimum wage, or even worth less, because they’re not essential. Which is a bogus argument, because how would you run a grocery store with cashiers and stockers. You might not need cashiers now because customers can now ring up their own groceries, but you eliminate all cashiers, now you’re spending more money on computers. Which might be more expensive. But someone has to stock the store, work in the bakery, work in seafood, work in the deli, etc. And the store wouldn’t be open without these employees who in many cases are making 8-9 bucks and hour and that is if they have experience working there, or at another store.

The United States poverty level is roughly twenty-thousand-dollars a year, give or take. Which is about four-hundred-dollars a week for a full-time employee. The current Federal minimum wage is $7.25 an hour and if you work forty-hours a week fifty-two weeks a year and if that is what you’re making you probably don’t have vacation pay, that comes out $290 a week. Just over fifteen-thousand-dollars a year, which roughly 3-4 of the poverty level in the United States. So minimum wage employees in America don’t even make the official poverty level in America, but about seventy-five-percent of that. And again we’re talking about essential employees that without their employers couldn’t be in business and yet their employers feel they’re paid adequately. Which of course is not accurate.

I don’t know what entry-level and other lower-level workers are worth. But again their employers wouldn’t be in business without them, so that tells me they’re worth a hell of a lot more than they are. I’m not on board for a fifteen-dollar an hour minimum wage at least at the Federal level. What states and localities do is their business. But 10-12 an hour and again not a lot of money even for a full-time employee, they’re certainly worth that, because again their employer wouldn’t be in business without them. And then help small business’s with a tax credit so they don’t get hurt by it. While large employers who are clearly underpaying their employees would have to pay the full amount. And Libertarians and Conservatives will say that, “the market should decide all wages and compensation in America.” But the fact is the market doesn’t do that, but employers only with government setting basic standards for workers compensation.

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I blog about practically everything that I'm interested in and knowledgeable about. Primarily about current affairs, news, politics and history. But for history, is not just about government and politics. But it covers those things, but entertainment, from movies to music, TV, sports, movies that are about politics and current affairs. Whether the characters are played by actors, or whether the film is in documentary form.

I'm interested in a lot of different things and spend a lot of my time learning about those things to the point that I feel the need to tell everybody what I know and think about what I have learn. Not sure if that is a good thing, or not. Since I'm a blogger, I hope that is good. Again for current affairs and news, as well as politics. But what is going on in those areas today, but also what happened in those areas in the past. History, is about teaching today's generation about what happened in the past. So we know what went well back in the day, but also what didn't work. So we know what works and what doesn't.

But again not just current affairs, news and politics. I love movies, especially classic movies. And when I'm not working and I'm at home, you can generally find me watching a movie. Or a ball game from that day, or a ball game from the past. And then if I'm really interested in what I'm seeing and I believe I'm pretty knowledgable about that, you can generally find what I learn from what I just watched up on my blog. You can physically take me away from my blog, but my mind is always there thinking about what's next for the blog. Looking for the next piece to write about.

I'm also a big fan of bios and watch a lot of them and read about people I'm interested in a lot as well. And again when I see a good bio about someone that I'm really interested in and I'm knowledgeable about, you can find what I know about that person and era up on my blog. I love documentaries, true crime, bios and bios of all kinds. Actors, politicians, athletes musicians, activists, a lot of different people.

I blog about a lot of different things. So if you're checking out my blog, but you're only interested in perhaps a few areas, you're probably not going to see a lot of what you're looking for. And end up seeing a lot of things you could probably care less about. But if you're someone who has multiple interests and knowledgable about those areas as well, I hope you check out my blog. Because I think we can learn from each other. I always welcome input to my blog. Just try to keep it professional and courteous. We can disagree with each other without trying to destroy each other. And perhaps even learn from each other.